Crypto whales buy Bitcoin massively in the first quarter of 2024

In the first quarter of 2024, Bitcoin (BTC) experienced a historic moment by reaching a record high. This performance was followed by a correction phase in the following weeks, something to be expected after such a strong rise.

Nonetheless, confidence among major investors, the so-called whales, remains unchanged and strong ahead of the upcoming halving event.

Whales buy Bitcoin massively

A recent report by blockchain analytics platform Santiment shows that BTC whales have made large purchases in the past three months. Collectively, they have bought 319,310 BTC, with a total value of about $21.6 billion.

At the same time, the report shows an opposite trend among smaller investors, often called retail traders, who have sold 105,260 BTC in the same period.

The importance of Bitcoin halving

The significant increase in Bitcoin ownership by whales is widely seen as a positive signal for the market. This growing interest is particularly important in view of the upcoming 'halving' event, which takes place every four years and halves the reward for miners. This process reduces Bitcoin's new supply, which has historically led to rising demand due to more limited supply.

The impact of America's economic policies on Bitcoin

Anthony Pompliano, a leading Bitcoin enthusiast, highlights an additional reason for Bitcoin's potential appreciation, rooted in US economic policy. He argues that the heavy interest burden of US national debt may force the country to turn on the money press, resulting in monetary inflation. This increase in the money supply, Pompliano says, would devalue the dollar but at the same time boost the Bitcoin exchange rate.

In support of his view, Pompliano cites that the dollar has lost around 20% of its value since 2020, while Bitcoin has experienced a remarkable 800% rise. He expects this trend to continue, which will increasingly position Bitcoin as a bastion of financial stability amid economic uncertainty. Pompliano is adamant in his belief that Bitcoin will not only continue to appreciate, but also reach new record highs in the short term.

Source: Newsbit